Björgólfur Thor Björgólfsson
|Björgólfur Thor Björgólfsson|
Reykjavík, Iceland 19 March 1967
|Occupation||Investor and Entrepreneur|
|Net worth||USD 1.29 Billion|
Björgólfur Thor Björgólfsson (born 19 March 1967 in Reykjavík, Iceland), known internationally as Thor Bjorgolfsson and colloquially in Iceland as Bjöggi, is an Icelandic businessman and entrepreneur, and former chairman of the financial firm Straumur-Burðarás and chairman of investment firm Novator Partners.
Björgólfur was the first Icelander to join Forbes magazine's list of the world's richest people in 2005; has been declared "Iceland's first billionaire"; and was ranked as the 249th-richest person in the world by Forbes magazine in 2007—up from 350th the previous year—with a net worth of $3.5 billion. In 2007 the Sunday Times’ Sunday Times Rich List put his net worth at £2,000 million. However, following the financial crisis of 2007–2010, Björgólfur's net worth declined to $1 billion by March of 2009.
Early and family life
Björgólfur Thor is heir to a long family legacy in Icelandic business and politics. His great-grandfather was the legendary Danish-born Icelandic entrepreneur Thor Jensen, who helped to introduce the term "big business" to the country in the early years of the twentieth century. The eighth of Thor's eleven children was Margrét Þorbjörg Thors Hallgrímsson, whose daughter Þóra Hallgrímsson had Björgólfur Thor as her only child by her third husband Björgólfur Guðmundsson. Þóra Hallgrímsdóttir, Björgúlfs Thor mother, was married to George Rockwell, founder of the American Nazi party. Björgólfur Thor has often emphasised this, for example by adapting for his company Novator the old logo of Eimskip, which Thor had originally designed for his company Kveldúlfur hf, and through his association with the biographical documentary Thor's Saga by Ulla Boje Rasmussen, which draws parallels between Thor Jensen and Björgólfur Thor.
- His rare self-confidence made him stand out. He was immensely physically strong and bench pressed over 450 pounds. He was an entrepreneur from early on, and by the age of 11 he was delivering newspapers in the early hours of the morning. A year later he was a delivery boy at the University of Iceland and, at 13, was running his own home video delivery service. While still in high school, he was running a nightclub in Reykjavík and organised the first Oktoberfest beer festival in Iceland. After high school, he studied business in New York. Fluent in several languages, and with an unusual ability to both blend in and stand out, he embodied Iceland's internationalism.
Björgólfur Thor Björgólfsson chose to go to the United States in 1986 when his father Björgólfur Guðmundsson's bankrupt firm, Hafskip, was embroiled in a financial scandal; the scandal may have arisen from the efforts of Hafskip's main competitor Eimskip and its allied political party, the Independence Party, to reduce competition, and the events probably had a considerable effect on the young Björgólfur Thor. At times he has presented his subsequent business activities as an effort to regain his and his father's reputations and pay their opponents back. Graduating from the prestigious Commercial College of Iceland in 1987, he completed a B.S. in Marketing at the Leonard N Stern School of Business at New York University in 1991.
On returning to Iceland, Björgólfur Thor became an events manager at Reykjavík's then two biggest clubs: Tunglið and Skuggabarinn. At this time he met and married the filmmaker Kristín Ólafsdóttir, with whom he has three children, the first of whom was born in 2005. They currently live in London, United Kingdom.
Beverage businessman in Saint Petersburg
In 1991, Björgólfur Thor went to Russia along with his father and a friend, Magnús Þorsteinsson. The Icelandic businessmen, together with Russian partners, founded bottling company Baltic Bottling Plant, which was sold to Pepsi. Next they founded a brewing company. ООО "Торговый дом "РОСА" was registered in March 1995 and changed its name to Bravo OOO in February 1996. It further changed its name to Bravo International OOO in August 1996 and Bravo International JSC in December 1997. The founders of Bravo were six companies registered in Limassol, Cyprus. Björgólfur Thor was president of all of them. Bravo Brewery became a success producing the premium beer Botchkarov. The company became the fastest growing brewery in Russia. Heineken bought the brewery for $400m in 2002.
In 2000, Saint Petersburg opened an honorary consulate in Iceland. Björgólfur Thor Björgólfsson was appointed Consul and Magnús Þorsteinsson was appointed Honorary Vice-Consul. The opening ceremony was held on March 10, 2000.
Björgólfur Thor's ventures in Russia raised suspicion. An article in The Guardian wondered where Björgólfur Thor Björgólfsson's money came from and noted that in the 1990s the men "were not only ploughing money into the country but doing it in the city regarded as the Russian mafia capital. That investment was being made in the drinks sector, seen by the mafia as the industry of choice." Similar concerns were raised by Die Welt. Competitors in the Saint Petersburg brewing market faced problems. For instance, Ilya Weismann, deputy director of competing beverage company Baltic, was assassinated on 10 January 2000. Later Baltic director general Aslanbek Chochiev was also assassinated. One competing Saint Petersburg brewery burned to the ground.
Björgólfur Thor has strongly denied any connection with mafia activity. In his book, Billions to Bust and Back, he chronicles his time in St Petersburg, detailing how criminal elements tried to intimidate him into giving them access to his business and explaining which security measures he relied on to prevent it.
After leaving Russia, Björgólfur Thor started investing in several Icelandic firms in 2002.
Novator Partners, which is managed by Björgólfur Thor, has bought assets around Eastern Europe. The company's owners are unknown.
Late in 2002, Björgólfur Thor and Björgólfur Guðmundsson's holding company Samson ehf. gained a 45% controlling share of Landsbanki, Iceland's second largest bank, for about ISK12m in a controversial privatization. The board was announced in February 2003, with the chairman being Björgólfur Thor's father. Landsbanki was declared to be acting contrary to the interests of the United Kingdom and placed on a watchlist usually used for the blocking of funds to terrorist organizations by the British government after bankruptcy in October 2008.
Straumur Investment Bank
Björgólfur Thor was the main owner as well as the chairman of the Straumur Investment Bank.
Two of Björgólfur Thor Björgólfsson's companies, Landsbanki and Straumur, left the Icelandic people with several billions of dollars in debt when they went bankrupt following the 2008–11 Icelandic financial crisis. He has been heavily criticized for his actions leading to the crisis.
Two days after the publication of the Icelandic government report on the financial crisis on 12 April 2010, Björgólfur Thor Björgólfsson issued a public apology for his role in the crisis in the Icelandic newspaper Fréttablaðið, including the statement:
- I the undersigned, Björgólfur Thor, request forgiveness from all Icelanders for my role in the asset- and debt-bubble that led to the collapse of the Icelandic banking system. I request your forgiveness for my complacency towards the danger signs which arose. I request forgiveness for having not succeeded in following my instincts when I realised the danger. I request your forgiveness.
Business after the crisis
Although Björgólfur Thor's fortunes were reduced by the financial crisis, leading him to cancel the construction of a £100m luxury yacht, he has continued to prosper overall. He has defended his reputation by disputing government and journalistic criticisms of his role in the 2008 financial crisis on his website, through letters to newspapers, and through legal action.
In December 2013, the website "The Automatic Earth" reported:
- Mr Bjorgolfsson still leads Novator Partners, a London-based investment firm, sits on several boards and holds shares in companies including Actavis, a Swiss drugmaker, and CCP, an Icelandic computer games company. His representative says any dividends from his shares, or future gains from their sale, will go towards settling debts to creditors following Landsbanki's decline.
Appearances in popular culture
Björgólfur Thor Björgólfsson is the inspiration for the main character of Bjarni Harðarson's satirical novel about the 2008–11 Icelandic financial crisis, Sigurðar saga fóts: Íslensk riddarasaga, where his counterpart is the main character, Sigurður frits ('fótur') Bjarnhéðinsson. He is also the inspiration for the main character of Bjarni Bjarnason's novel Mannorð ('reputation'), Starkaður Leví, who pays for the identity (and the life) of a well respected writer.
Björgólfur Thor and his great-grandfather Thor Jensen are the subject of the 2011 documentary film Thors saga by Ulla Boje Rasmussen.
- Thor Björgólfsson profile on Forbes
- Guðni Thorlaicus Jóhannesson, The History of Iceland (Santa Barbara: Greenwood, 2013), http://books.google.co.in/books?id=Elh1oH6ESSIC&
- Guðmundur Hálfdanarson, Historical Dictionary of Iceland, 2nd edn, Historical Dictionaries of Europe, 66 (Lanham, Maryland: The Scarecrow Press, 2008), p. 21 (s.v. BJÖRGÓLFSSON, BJÖGÓLFUR THOR (1967-- )).
- [dead link]
- Guðmundur Magnússon, Thorsararnir: auður – völd – örlög (Reykjavík: Almenna bókafélagið, 2005), p. 354
- Peter Thorn - http://www.spildaftid.dk. "Upfront Films + 45 888 10 788". Upfrontfilms.dk. Retrieved 2014-05-31.
- Jón G. Hauksson, 'Björgólfur Thor og Jón Tetzchner: Íslendingar eiga tvo leiðtoga í 237 manna hópi „Ungra leiðtoga" sem taka þátt í verkefninu Forum of Young Global Leaders', Frjáls verslun, 67.1 (2005), 16--22 (p. 18); ISSN: 1017-3544.
- Armann Thorvaldsson, Frozen Assets: How I Lived Iceland's Boom and Bust (Chichester: Wiley, 2009), pp. 64-65.
- Roger Boyes, Meltdown Iceland: Lessons on the World Financial Crisis from a Small Bankrupt Island (New York: Bloomsbury, 2009), pp. 64-66.
- E.g. Kroll, Luisa, 'Thor's Saga', Forbes Global, 8.5 (2005), 78.
- Guðmundur Hálfdanarson, Historical Dictionary of Iceland, 2nd edn, Historical Dictionaries of Europe, 66 (Lanham, Maryland: The Scarecrow Press, 2008), p. 21 (s.v. BJÖRGÓLFSSON, BJÖGÓLFUR THOR (1967-- )); Peter Lee, `Landsbanki's new masters take control', Euromoney, vol. 33 issue 403 (November 2002), pp. 34--47.
- "Where have all the billionaires gone?", IceNews: News from the Nordics (16 June 2009), http://www.icenews.is/2009/06/16/where-have-all-the-billionaires-gone/; Yves Smith, 'Ragnarok - Iceland and the "Doom of the Gods" ', The Automatic Earth (16 December 2013), http://www.theautomaticearth.com/ragnarok-iceland-doom-gods-2/; Roger Boyes, Meltdown Iceland: Lessons on the World Financial Crisis from a Small Bankrupt Island (New York: Bloomsbury, 2009), p. 66; Louisa Kroll, 'Thor's Saga', Forbes, 3/28/2005, http://www.forbes.com/forbes/2005/0328/138.html.
- "Who is Thor Bjorgolfsson, Iceland's lone billionaire?". Invest in Greece. 2006-01-20.
- Griffiths, Ian (16 June 2005). "Next-generation Viking invasion - They've got the cash to buy big UK groups like M&S. But where does it come from?". London: The Guardian.
- Frank Stocker, 'Holprige Fahrt vom Balkan nach Europa', Die Welt, 08.01.06, http://www.welt.de/print-wams/article136961/Holprige-Fahrt-vom-Balkan-nach-Europa.html
- Björgólfur Thor Björgólfsson and Andrew Cave, Billions to Bust and Back (London: Profile Books, 2014), p. 55-65
- Simon Bowers and Sigrun Davidsdottir, 'Icelandic tycoon still living the high life in London after the collapse of Icesave', The Observer (28 August 2011), p. 35 (http://www.theguardian.com/business/2011/aug/27/iceland-tycoon-thor-high-life-icesave-collapse).
- Guðmundur Magnússon, Thorsararnir: auður – völd – örlög (Reykjavík: Almenna bókafélagið, 2005), p. 354; Questions over Landsbanki's new shareholder /Euromoney magazine
- "Online, Iceland News, Travel, Vacation, Culture, Hotels, Politics, Business". IcelandReview. Retrieved 2014-05-31.
- Guðmundur Magnússon, Thorsararnir: auður – völd – örlög (Reykjavík: Almenna bókafélagið, 2005), p. 354
- IceNews - Daily News. "Interview with Björgólfur Thor Björgólfsson". Retrieved 2009-01-22.[dead link]
- Björgólfur Thor Björgólfsson, 'Ég bið ykkur afsökunar', Fréttablaðið 14 April 2010. Quoted from Guðbjörg Hildur Kolbeins, '...svo sem vér og fyrirgefum... Fyrirgefningin og hrunið', Þjóðarspegillinn: Rannsóknir í félagsvísindum, 12 (2011), 112-19 (p. 115), accessed from http://skemman.is/stream/get/1946/10259/25577/1/Rannsoknir_i_felagsvisindum_XII_Vidskiptafraedideild.pdf#page=120 13 April 2012.
- Bjorgolfur Thor Bjorgolfsson, letter, The Observer 11 December 2011, p. 46; Simon Bowers and Sigrún Daviðsdóttir, 'Icelandic tycoon still living the high life in London after the collapse of Icesave', The Observer (28 August 2011), p. 35.
- Yves Smith, Yves Smith, 'Ragnarok - Iceland and the "Doom of the Gods" ', The Automatic Earth (16 December 2013), http://www.theautomaticearth.com/ragnarok-iceland-doom-gods-2/.
- Selfoss: Sæmundur, 2010. See Alaric Hall, "Sigurðar saga fóts: Fourteenth-century Saga to Financial Crisis Satire", http://web.uvic.ca/~becktrus/guest_lects.php?sort=seqEng.
- Uppheimar, 2011. 'Rithöfundur og talsmaður deila um skáldsögu: „Mannorðskaup eru á hans áhugasviði" ', Pressan 12 December 2011, http://eyjan.pressan.is/frettir/2011/12/12/talsmadur-og-rithofundur-deila-um-skaldsogu-a-upplestri-mannordskaup-eru-a-hans-ahugasvidi/.